by Patrick Appel
A reader writes:
As the Federal government is busy trying to stimulate the economy, many state governments are actively de-stimulating the economy. California's been getting most of the press on this front recently because of its sheer size and, um, special politics. But a large majority of states are slashing both their employment levels and their social safety nets, two avenues for spending that have a strong direct impact on consumer spending levels. So states have the ultimate shovel-ready program – not firing people. It's instantaneous. If one accepts the argument that a second stimulus is good in principle, the practice would be to give the money to state governments to support existing programs. They would have no trouble spending it, and quickly.
The Dish 